A UNIT of Leisure and Resorts World Corp. (LRWC) will be taking out a P2.5-billion loan from BDO Unibank, Inc. to partially finance its planned resort development.

In a disclosure to the stock exchange on Friday, the listed firm said its wholly-owned subsidiary AB Leisure Global, Inc. has executed an omnibus loan and security agreement (OLSA) with the Sy-led bank.

“The OLSA was executed to fund the acquisition of parcels of land for its planned resort development,” the company said in the disclosure.

LRWC did not include further details about the resort project.

Incorporated in 1957, LRWC and its subsidiaries operate internet and gaming enterprises in the Cagayan Special Economic Zone Free Port. It further develops leisure properties in the country.

LRWC profits declined 59% in the first nine month of 2017 to P362 million, following a 10% year-on-year drop in revenues to P7.3 billion.

Macau-based casino operator Galaxy Entertainment Group Limited plans to invest as much as $500 million to build an integrated casino-resort in the Philippines. Galaxy Entertainment Group Limited and local partner Leisure and Resorts World Corporation (LR) are seeking regulatory approval for the $300-$500 million casino project in the central Philippine island of Boracay, Boracay Island is the Philippines top tourist draw, famous for its powdery white sand beach and vibrant nightlife. The integrated casino could start operating three years after the regulatory approval.

LEISURE and Resorts World Corp. (LRWC) disclosed on Monday negotiations with a gaming firm based in Macau on a possible partnership for a beach resort and casino in Boracay island.

LRWC said it is in talks with Galaxy Entertainment Group Limited (GEG) for the resort and casino, noting that representatives from the firms, led by GEG Chairman Lui Chee-woo and Vice-Chairman Francis Lui Yiu Tung, paid President Rodrigo R. Duterte a courtesy call to discuss the project last week.

“Galaxy is excited about the possibility of teaming with LRWC to develop a world class beach resort for our players in Boracay which was just rated the number one island in the world in 2017 by Conde Nast Traveller readers,” Mr. Lui Yiu Tung was quoted as saying in a statement.

GEG is listed on the Hong Kong Stock Exchange, which has three flagship destinations, namely Cotai, Galaxy Macau, Broadway Macau, and Peninsula StarWorld Macau, according to its Web site. Its international presence comes in the form of a strategic investment in Société Anonyme des Bains de Mer et du Cercle des Etrangers à Monaco, an owner of luxury hotels and resorts in Monaco.

LRWC, meanwhile, operates over a hundred bingo parlors in the country as well as a number of leisure properties held by its subsidiaries. The company dubbed the potential project with GEG as a “game changer” for the resort and tourism industry.

“We look forward to working with GEG in bringing a world class resort to the island-paradise of Boracay. If the project materializes as envisaged, it’s going to be a game changer in the Philippine resort and tourism landscape,” LRWC Vice-President for Legal and Corporate Secretary Katrina L. Nepomuceno said in a statement.

The possible partnership comes amid improving relations between China and the Philippines, given the president’s friendlier attitude toward the former.

Mr. Lui Yiu Tung added that GEG, along with its mother company K Wah Group, looks to take part in the One Belt One Road initiative and explore the potential and attractive business opportunities in the country

Galaxy Entertainment Group Ltd. is betting big on the Philippines through a partnership with Leisure and Resorts World Corp. (LRWC), the listed gaming company founded by Negros Occidental Rep. Alfredo “Albee” Benitez.

LRWC and Galaxy have teamed up to develop a world-class beach resort and casino on Boracay Island in Panay.

In August, The STAR reported that Galaxy was looking to enter the Philippines through a partnership with LRWC. Sources said Galaxy would infuse $300 to $500 million into the project.

Officials from both companies have confirmed the plan and executives from LRWC and Galaxy paid a courtesy call to President Duterte last week to discuss the project. The team from Galaxy was headed by its chairman Lui Che-woo and vice chairman Francis Lui Yiu Tung.

“Galaxy is excited about the possibility of teaming up with LRWC to develop a world class beach resort for our players in Boracay which was just rated the number one island in the world in 2017 by Conde Nast Traveller readers,” Tung said.

The entry of Galaxy in the country comes on the back of improving relations between the Philippines and China following President Duterte’s visit to Beijing last year.

Tung said that with this improving China-Philippines relations, Galaxy and and its mother company K Wah Group hope to play a role in the One Belt One Road initiative and wish to explore the great potential and attractive business opportunities in the Philippines.

LRWC vice president for legal Katrina Nepomuceno said the company is honored and pleased to be chosen as GEG’s local partner.

“We look forward to working with GEG in bringing a world class resort to the island-paradise of Boracay. If the project materializes as envisaged, it’s going to be a game changer in the Philippine resort and tourism landscape,” she said.

LRWC is a holding firm with interests in property development focusing on leisure business, gaming and recreation. At present, it owns bingo parlors all over the Philippines and has an existing license agreement with the Cagayan Economic Zone Authority to develop, operate and conduct internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport.

It is also engaged in the hotel and recreation business.

In Macau, Galaxy first opened in 2011 at the Cotai Strip, a 550,000 square meter resort with Las Vegas-style facilities such as the world’s largest sky wave pool, a white sandy beach, and dozens of private villas and cabanas.

The Philippine Amusement and Gaming Corp. expects gross gaming revenues in the Philippines to expand to P160 billion this year.

Businessman Dennis Uy, founder of Davao-based Phoenix Petroleum and a known Duterte ally, had broken ground for a $300 million integrated casino resort in Cebu, the first of its kind outside Metro Manila.

Ports tycoon Enrique Razon is also expanding his Solaire Resort and Casino in Paranaque to comprise the second phase of the pioneer player at the 100-hectare Entertainment City.

Solaire is also building its second site in Quezon City with an estimated investment of $380 million.